No change to household electricity prices for another 4.5 months: The Madbouly cabinet has approved a decision to leave household electricity prices frozen until 1 January, 2024, following a directive from President Abdel Fattah El Sisi, according to a c abinet statemen t. The decision is part of an “exceptional package of social protection” measures aimed at easing financial pressures on the public, the statement reads.

REMEMBER- Price hikes were due last month. The government in June 2022 fixed electric ity prices for a third time to protect households from the rising cost of living, a freeze that expired at the end of FY 2022-2023 on 30 June.

A pause on the plan to roll back subsidies: The government in 2020 laid out a roadmap to phase out subsidies by 2025. Had last year’s hikes come into effect, some households would have seen their electricity bills rise by as much as 21%.

The biggest consumers already foot their full electricity bills — and more: Subsidies were fully lifted for households that consume more than 650 KWh/month in FY 2020-2021. These high-consumption households are charged a high markup on their electricity prices, which is used to subsidize low-income and low-consumption households.

But subsidy reform remains a priority: The phase-out of various types of subsidies is a key pillar of the government’s fiscal reform efforts. Winding down fuel subsidies is a condition of our USD 3 bn loan program with the International Monetary fund (IMF).

An ill-lit backdrop: The move comes as the country remains in the grip of a power crisis, with the government implementing a schedule of rolling blackouts and other power-saving measures after a heatwave triggered a surge in electricity demand.

The news got ink in the international business press: Reuters.

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